Nine Entertainment Co
is in preliminary talks with at least two potential investment targets, as it looks for the next
Carsales.com
or
iSelect
.

Nine Ventures typically takes ­minority positions of between 15 per cent and 40 per cent in consumer-facing ­businesses through a mix of cash and contra advertising with Nine’s free-to-air television network.

The team includes managing ­director
Melanie Kansil
, a former management consultant with
McKinsey and Company
, and analyst
Alexi Baker-McLennan
, who has previously worked with Deutsche Bank and Credit Suisse.

“We have had great success in the past and we’re looking to add some new investments to the portfolio," Ms Kansil said. “We’re not really focused on the seed-stage businesses. We want businesses with proven business models that are appealing to mass-market consumers and are really ready to grow."

Nine has met with the management of businesses in the education and ­consumer products sectors and is assessing the numbers on each to see if an investment is viable.

Nine made a $20 million investment in insurance comparison website ­iSelect in 2006 and sold its stake for $115 million when the company was floated last year.

It was a good time to sell out, given the company is trading nearly 40 per cent below its issue price of $1.85, after a troubled initial public offering.

The company has invested $13 million in cash and contra advertising for a 16.7 per cent stake in
Mark Bouris
’s
Yellow Brick Road
diversified financial business. Nine’s stake is now worth about $20 million.